Tag Archives: london
Low cost rental property programme launched in the UK
A new pioneering £400 million programme has been launched in the UK to boost the building of new affordable rental homes available at below market rates. Current schemes like Help to Buy have boosted house building and allowed 53,000 households buy a home with a fraction of the deposit they would normally require and now the government wants to do the same for the rental market. Communities Secretary Eric Pickles said that the new Rent to Buy provides more flexibility for people who want to rent affordably now, save for a deposit, and then either buy the new home or a different home later. Under the scheme, housing associations and other providers can bid for a share of £400 million in low cost loans to build up to 10,000 new homes across the country from 2015 to 2018. They will mainly consist of one and two bedroom apartments. Landlords must make the homes available for rent at below market rates for a minimum of seven years. Pickles said that this fixed period will give tenants the opportunity to save up for a deposit and get ready to buy their own home. At the end of the period, the tenant will have first refusal to buy the property or alternatively they may choose to move out and buy a different property, or rent another property either privately or with the housing association. If the home is sold, the housing association will then have the option to use any returns on their investment to build even more affordable homes in the area. Alternatively, they will still have a home, which they can look to rent at an affordable rate to another tenant who needs help to buy. This programme is part of a broader £23 billion affordable homes programme for 2015 to 2018, as well as other schemes like Help to Buy providing low deposit mortgages and Right to Buy which provides home ownership for council tenants. Pickles pointed out that these schemes are being arranged now, so construction works starts from 2015. ‘This government is standing by people who work hard and do the right thing, and helping them move on and up in life,’ he said. ‘Both house building and the number of first time buyers are now at their highest rate since 2007. But there is more to do. As part of our wider housing programme, this new scheme will help increase the provision of low cost rented accommodation and provide a springboard for young people to upgrade to home ownership down the line,’ he added. Under the deal housing associations will have up to 16 years to pay back the low cost loans. Until the loans are repaid, the homes must be made available for affordable rent. Only once the loans are paid can the housing association sell or rent it out at a market rate. Of the £400 million of government loan funding for this scheme, half of this will be available in London. London based housing associations… Continue reading
London’s Mayfair once again becoming top prime market
Mayfair has not always justified its status as the premier address on the London Monopoly board but it is now on track to be a prestigious location again. Construction of its mansions and garden squares began in the early eighteenth century and what was once farmland became London’s most exclusive neighbourhood. However, the Second World War dented its desirability as a residential district, with businesses moving to Mayfair because their offices in the City had been destroyed and in recent decades, as post-war temporary office permissions expired, properties have been converted back to residential use. However, according to research by international real estate firm Knight Frank there is a more profound change underway. The premium nature of the development pipeline indicates a step-change taking place in relation to quality and pricing in Mayfair. ‘With achieved prices for the best new build schemes approaching, and in some cases exceeding, £5,000 per square foot, Mayfair is on track to regain its status as London’s premier address and merit its position of supremacy on the Monopoly board,’ said Knight Frank’s tom Bill. He added, that in addition to an abundance of Michelin starred restaurants and five-star hotels, Mayfair’s reputation for exclusivity derives from the high number of private member’s clubs, embassies, Royal residences and high-end shopping streets. ‘Mayfair has not had a residential pipeline with such an overwhelming focus on quality for several decades. It is symptomatic of how developers are addressing the increasingly stringent demands of buyers in prime central London, and has led to a step-change in relation to quality and pricing for the best residential property in Mayfair,’ he explained. Also, buyers, particularly in higher price brackets, are less loyal to particular areas of London and have become more product-driven. ‘As more buyers look north of Hyde Park for the right property rather than the right postcode, successful Mayfair developers are combining the cachet of the area’s name with the sort of exceptionally high-quality finish and services that buyers demand,’ said Bill. Indeed, according to Knight Frank, the percentage of all £10 million plus sales in central London over the last year, underlining how the pace of sales is accelerating to a greater degree in Mayfair than in Kensington, Knightsbridge or Belgravia. Mayfair, Knightsbridge and Belgravia form the trio of super prime markets in prime central London. However, Mayfair’s exclusive origins, global reputation for luxury and premium development pipeline give it a particular cachet among buyers that is likely to rise. Continue reading
Latest Help Buy figures show over 50,000 have bought new homes in England
Almost 53,000 households have bought a home in England through the government’s flagship Help to Buy scheme, according to the latest figures to be released. The figures show how the scheme is getting more homes built in England, with over 37,600 households buying new build homes through the equity loan and NewBuy options, and a further 15,000 though the mortgage guarantee. A further 3,500 new home owners have also been created in Scotland, Wales and Northern Ireland through the Help to Buy mortgage guarantee scheme, said Housing and Planning Minister Brandon Lewis. Almost 80% of sales have gone to first time buyers, with nearly 70% being for new build homes. The direct result is a new generation of homeowners and the sharpest increase in private house building starts for 40 years. Lewis said the figures were further evidence that hard working families were voting with their feet, and Help to Buy was expanding and accelerating the supply of new homes. House building has climbed to the highest level since 2007, the construction sector has grown for 16 consecutive months, and companies are now taking on new workers at the fastest rate since 1997. He pointed out that the government has also expanded the range of available data about Help to Buy. Sales are now broken down by postcode and constituency so communities, builders and businesses can see exactly how the scheme is benefiting their local area. ‘Almost 53,000 households have now benefited through Help to Buy in England. Hard working families are getting the right support to step onto the housing ladder, and house building has climbed to its highest level since 2007,’ said Lewis. ‘Postcode data for each constituency is now available, so local communities can see exactly how this vital part of our long-term economic plan is fixing the broken housing market we inherited in 2010, and supporting their area,’ he added. Overall, sales of new build homes have been strong across the country. The highest number of equity loan sales were in Wiltshire with 557, Leeds with 539 and Central Bedfordshire with 504. Peterborough, Milton Keynes, Bedford, County Durham, Birmingham, Bradford, Manchester, Kingston-upon-Hull, Aylesb Continue reading
